RE:RE:Earnings beat.Below is from their publicly released results
Cash flow from operating activities for the current quarter increased by $16.5 million, which is mainly explained by a positive non-cash working capital variation of $10.4 million, lower income taxes paid of $8.0 million, due to payment delays allowed by the government as a result of the COVID-19 pandemic and lower interest paid of $4.5 million, due to timing in payment quarter-over-quarter, somewhat offset by a decrease in adjusted EBIT of $5.6 million. Year-to-date, cash flow from operating activities increased by $33.9 million, which is mainly explained by a positive non-cash working capital variation of $25.8 million, lower income taxes and interest paid of $13.3 million and $4.2 million, respectively, for the same reason as the quarter, somewhat offset by a decrease in adjusted EBIT of $8.1 million and an increase of $0.5 million in pension contributions.
The negative variation in cash flow used in financing activities of $12.6 million for the current quarter is mainly attributable to a reduction of $11.7 million in borrowings from the revolving credit facilities and bank overdraft. In addition, the adoption of IFRS 16 Leases resulted in an increase of $1.0 million in cash outflow used in financing activities as a result of payments made for lease obligations. Year-to-date, cash flow used in financing activities had a negative variance of $33.9 million, explained mainly by a $24.4 million reduction in borrowings from the revolving credit facilities and bank overdraft, by the repurchase of $6.5 million under the NCIB and by $3.1 million in payments towards lease obligations under IFRS 16.
The cash outflow used in investing activities for the current quarter and year-to-date was $1.2 million lower and $0.7 million lower, respectively, versus the comparable periods last year.
In order to provide additional information, the Company believes it is appropriate to measure free cash flow that is generated by the operations of the Company. Free cash flow is a non-GAAP measure and is defined as cash flow from operations excluding changes in non-cash working capital, mark-to-market and derivative timing adjustments and financial instruments’ non-cash amounts, and including funds received or paid from the issue or purchase of shares, capital expenditures, net of operational excellence capital expenditures, and the payment of capital leases.
Free cash flow is as follows:
| (In thousands of dollars) | Trailing twelve months |
| | 2020 | | | 2019 (2) | |
| Cash flow from operations | $ | 89,767 | | $ | 73,210 | |
| Adjustments: | | | | | | |
| Changes in non-cash working capital | | (23,765 | ) | | (18,404 | ) |
| Mark-to-market and derivative timing adjustments | | (1,890 | ) | | (545 | ) |
| Amortization of transitional balances | | (680 | ) | | (2,334 | ) |
| Financial instruments non-cash amount | | 126 | | | 3,081 | |
| Capital expenditures and intangible assets | | (26,293 | ) | | (29,055 | ) |
| Operational excellence capital expenditures | | 10,675 | | | 10,336 | |
| Payment of leases obligation | | (3,088 | ) | | - | |
| Purchase and cancellation of shares | | (7,176 | ) | | (2,151 | ) |
| Deferred financing charges | | (156 | ) | | - | |
| Free cash flow (1) | $ | 37,520 | | $ | 34,138 | |
| Declared dividends | $ | 37,501 | | $ | 37,803 | |